Northwest Airline, Inc., v.

Steven Chiong
G.R. No. 155550
January 31, 2008
NACHURA, J.

People/companies involved in the case:

Philimare Shipping and Seagull Maritime Corporation (Philimare) – authorized
Philippine agent of TransOcean Lines
Steven Chiong – hired as Third Engineer of TransOcean’s vessel M/V Elbia at the San
Diego, California Port.
Marilyn Calvo - Philimare’s Liaison Officer who accompanied Chiong to the Philippine
Coast Guard
FACTS

(Philimare), as the authorized Philippine agent of TransOcean Lines (TransOcean),

hired respondent Steven Chiong as Third Engineer of TransOcean’s vessel M/V Elbia at
the San Diego, California Port.
Subsequently, Philimare dispatched a Letter of Guarantee to CL Hutchins & Co., Inc.,
TransOcean’s agent at the San Diego Port, confirming Chiong’s arrival thereat in time to
board the M/V Elbia which was set to sail on April 1, 1989 (California, United States
time). For this purpose, Philimare purchased for Chiong a Northwest plane ticket for
San Diego, California with a departure date of April 1, 1989 from Manila. Ten (10) days
before his scheduled departure, Chiong fetched his entire family from Samar and
brought them to Manila to see him off at the airport.
 Chiong arrived at the Manila International Airport 4 (MIA), three (3) hours before the
scheduled time of departure. Marilyn Calvo, Philimare’s Liaison Officer, accompanied
Chiong to the Philippine Coast Guard (PCG) Counter to present Chiong’s seaman
service record book for clearance. Thereafter, Chiong’s passport was duly stamped,
after complying with government requirements for departing seafarers.
Chiong proceeded to queue at the Northwest check-in counter. When it was Chiong’s
turn, the Northwest personnel informed him that his name did not appear in the
computer’s list of confirmed departing passengers. Chiong queued a number of times at
Northwest’s Check-in Counter and presented his ticket. However, Chiong was not
allowed to board Northwest Flight No. 24 bound for San Diego that day and,
consequently, was unable to work at the M/V Elbia.
It appears that Chiong’s name was crossed out and substituted with "W. Costine" in
Northwest’s Air Passenger Manifest.

Ruling of the Trial Court

RTC rendered a Decision finding preponderance of evidence in favor of Chiong, and

holding Northwest liable for breach of contract of carriage. The RTC ruled that the
evidence adduced by the parties supported the conclusion that Chiong was deliberately
prevented from checking-in and his boarding pass unjustifiably withheld to
accommodate an American passenger by the name of W. Costine.

Ruling of the Court of Appeals

The CA affirmed in toto the ruling of the RTC.

Issue

Whether or not Northwest Airlines Inc. has breached the contract of carriage.

Held:

Yes.  In addition to his testimony, Chiong’s evidence consisted of a Northwest ticket for
the April 1, 1989 Flight No. 24, Chiong’s passport and seaman service record book duly
stamped at the PCG counter, and the testimonies of Calvo, Florencio Gomez, and
Philippine Overseas Employment and Administration (POEA) personnel who all
identified the signature and stamp of the PCG on Chiong’s passport.
The documentary and testimonial evidence, taken together, amply establish the fact that
Chiong was present at MIA on April 1, 1989, passed through the PCG counter without
delay, proceeded to the Northwest check-in counter, but when he presented his
confirmed ticket thereat, he was not issued a boarding pass, and ultimately barred from
boarding Northwest Flight No. 24 on that day.

In stark contrast is Northwest’s bare-faced claim that Chiong was a "no-show"

passenger, and was scheduled to leave the country only on April 17, 1989. As
previously discussed, the records belie this assertion.

It is also noteworthy that Northwest did not present any evidence to support its belated
defense that Chiong departed from the Philippines on April 17, 1989 to work as Third
Engineer on board M/V Elbia under the original crew agreement.

Time and again, we have declared that a contract of carriage, in this case, air transport,
is primarily intended to serve the traveling public and thus, imbued with public interest.
The law governing common carriers consequently imposes an exacting standard of
conduct. As the aggrieved party, Chiong only had to prove the existence of the contract
and the fact of its non-performance by Northwest, as carrier, in order to be awarded
compensatory and actual damages.